Technology has played a crucial role in South Korea’s recent economic performance. Economist Kelvin Lam highlighted that data from South Korea’s Performance Management Index (PMI) indicates the country’s economic growth is primarily technology-driven. The rise in industrial output and rapid growth in new orders have been fueled by strong external demand. The semiconductor sector, in particular, has significantly strengthened South Korea’s economy, with investments in artificial intelligence and increasing demand for data centers playing a key role. Experts note that the positive trend in the chip industry is unlikely to reverse in the short term, which bodes well for the economy. However, non-chip sectors face challenges, especially the petrochemical and steel industries, which are grappling with intense global competition and oversupply. Additionally, the depreciation of the Korean won has increased import costs, forcing manufacturers to bear higher expenses. These additional costs have not been fully passed on to consumers, impacting profit margins. While technology’s growing role provides a solid foundation for South Korea’s economy, other industrial sectors appear vulnerable due to global challenges. Future economic conditions and currency fluctuations will influence the economy, making government and industry policies critical.
Source: binance
